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There are how many Bahraini dinars per U.S. dollar if the nominal exchange rate is 3 Argentine pesos per U.S. dollar, and 0.202 Bahraini dinars per Argentine peso?
A. 0.333
B. 0.606
C. 4.95
D. 0.67
Cuba is an exporter of grain to North Korea. In a closed economy Cuba must have a domestic price that is _____ the world price of grain.
A. less than
B. greater than
C. equal to
D. close to
Japanese currency went from 98 yen per U.S. dollar to 95 yen per U.S. dollar. This means the Japanese yen has ______ and the U.S. dollar has ________.
A. appreciated; appreciated
B. appreciated; depreciated
C. depreciated; appreciated
D. depreciated; depreciated
Ceteris paribus, in the situation where Americans begin to decrease their purchases of Mexican goods, what will happen to the supply of dollars in the foreign exchange market? What will happen to the exchange rate for Mexican pesos relative to American dollars?
A. increase; increase
B. increase; decrease
C. decrease; decrease
D. decrease; increase
Suppose a U.S marble maker can import 50% of the total quantity demanded of marbles. This is an example of a(n) ________.
A. tariff
B. quota
C. trade limit
D. import tax
The nominal exchange rate of the kwacha (currency of Zambia) is equal to $1.28 (U.S. dollars) per kwacha. However, the kwacha is set a fixed rate equal to $1.25 per kwacha. This means the kwacha exchange rate is ____________. In order to maintain this exchange rate the Zambian government will see _____________ in their stock of international reserves.
A. undervalued; a net decline
B. undervalued; a net increase
C. overvalued; a net increase
D. overvalued; a net decline
You have been presented with the following data and asked to fit statisti cal demand functions:
PERIOD QUANTITY PRICE INCOME ADVERTISING
1 120 8.00 10 3
2 165 4.00 22 7
3 120 7.00 20 5
4 165 3.00 20 8
5 180 4.00 30 8
6 90 10.00 19 6
7 150 4.00 18 10.2
8 190 1.60 25 9.3
9 160 5.00 30 8
10 200 2.00 35 9.5
a.Linear Relationship
i.Use any multiple regression packages to estimate a linear relationship between the dependent variable and the independent variables.
ii.Is the estimated demand function “good”? Why or why not?
iii.Discuss the economic implications of the various coefficients.
b.Non-linear relationship.
i.Select and estimate any form of non-linear relationship.
ii.Is the estimated demand function “good”? Why or why not? Compare with the linear form above. Elaborate.
Assuming there are two companies selling personal computers,Company Jackfruit Computers and Company Mangoes Computer. They both have an inventory of personal computers that they would like to sell before a new generation of faster, cheaper machines is introduced. The question facing each competitor is whether or not they should widely advertise a “close out” sale on these discontinued items, or instead let excess inventory work itself off over the next few months. The net revenue to each firm in millions of $, is depicted in the payoff matrixbelow:
Mangoes
Jackfruit
Advertise
Don’t advertise
Advertise
M: $5
J: $5
M: $2
J: $20
Don’t advertise
M: $20
J: $2
M: $10
J: $10
a. Determine the dominant strategy for each firm.
b. Would collusion work in this case? Explain.
Jane manages a small bakery that bakes only "make-to order" cakes. Her total cost (TC) and total revenue (TR) functions are as follows:
TC = 50 + 80Q - 10Q2 + Q3
TR = 100Q - 8Q2
The bakery has a capacity of handling 30 units at any one time.
i. Determine the price she should charge if she wants to maximise total revenue.
ii. Compute the price she should charge if she wants to maximise profits.
Determine whether the following production functions exhibit constant, increasing, or decreasing returns to scale. Provide relevant workings to support your answers.
i. Q = 0.25X + 5Y + 30Z
ii. Q = 4L2 + 6LK + 3K2
iii. Q = 2L0.2K0.6
Describe the condition of finding the optimum level of single input and multiple inputs. Illustrate and discuss the concept of finding the optimum level of multiple inputs.
